EPFO will Implement Fast PF Withdrawals Via ATMs and UPI

With immediate access via UPI and ATMs, the Employees' Provident Fund Organisation (EPFO) plans to implement a significant modification to PF withdrawals. By the end of May or the beginning of June 2025, EPFO members will no longer have to endure drawn-out withdrawal processes. The National Payments Corporation of India (NPCI), which is in charge of the nation's digital payment infrastructure, has approved the plan, which is supported by the Ministry of Labour and Employment.

Government Setting a Limit of INR 1 Lakh

With a withdrawal cap of up to INR 1 lakh, employees would have immediate access to their PF money, according to Sumita Dawra, Secretary, Ministry of Labour and Employment. Members would be able to monitor their PF balance directly on UPI and make instantaneous withdrawals using an automated mechanism by the end of May or early June, she told a news agency. For transfers, they can choose the bank account of their choice. Members will be able to easily fulfil urgent financial necessities thanks to the INR 1 lakh withdrawal limit. Withdrawals from PF are now a laborious procedure. Members of EPFO must file claims online and wait for approvals, which can occasionally take weeks. Employees will also be able to monitor their balances and conduct instant transactions thanks to the UPI connection.

In addition to the current option for medical crises, the EPFO is expanding the scope of fund withdrawals by permitting members to take money out for housing, education, and marriage. The goal of this expansion is to give the nation's workers more financial flexibility. Dawra emphasised that in order to streamline withdrawals, EPFO has enhanced its digital infrastructure by integrating more than 120 databases. With 95% of claims now automated, the claim processing time has been reduced to only three days, and more advancements are planned.

Drafting these Reforms was a Big Challengee: Dawra

According to Dawra, implementing these improvements proved challenging. The enormous size of the EPFO is demonstrated by the number of its members. With 147 regional offices spread across the country, the organisation has over 7.5 crore active members and is still expanding, acquiring 10–12 lakh new members each month. Prime Minister Narendra Modi's goal of "ease of living" for both businesses and employees is in line with these reforms, Secretary Dawra said. The project intends to modernise IT infrastructure, streamline social security procedures, and give Indian workers more financial ease. A major turning point in India's digital financial transformation will be reached with the upcoming introduction of UPI and ATM-based PF withdrawals, which will provide millions of working professionals with previously unheard-of speed and ease.